A mortgage rate war could be on the way, as banks look to lend more money to potential home buyers.
Heartland Bank has stoked the fire with a record, one year fixed loan rate of 1.99 percent.
Meanwhile, house prices continue to defy Covid-19, with figures from the Real Estate Institute showing the median house price is now $685,000.
Homes are also being bought at a faster rate, meaning the number of new listings is staying low.
RNZ reporter Anan Zaki has more.